unsustainable stock market

seriously is it? or market will go down again/?

check this thread on the topic:
http://www.streeteasy.com/nyc/talk/discussion/12135-stock-market-looking-ill

ritholtz thinks there's more gas in the tank, but admits its based on technicals not fundamentals. bear market rallies can be fierce.

http://www.ritholtz.com/blog/2009/09/pomboy-deflation-not-inflation-is-the-greater-threat/
http://www.ritholtz.com/blog/2009/09/rally-may-only-in-6th-inning/

i remenber when we saw the employment report before this crisis of losing 50,000 employees
the market used go down, now we lose 500,000 the market goes up.anyone want to say somthing.

the market only cares that each and every one of its favorite children will be kept alive by easy money and the taxpayers. eventually grandfather ben, uncle larry and cousin timmy will have no more means of providing reassurance.

Market has only gone up this far this fast 6 times in history. In the 1930s and 1970s. Great opportunity to make money with short term volatility, OR great opportunity to lose even more if you aren't on a hair trigger trading.

China has 41 million umemployed workers -- that says something aqbout global sustainability

To the extent GDP numbers improved it was inventory rebuilding and short term stimulus. Earnings barely improved due to cost cutting. With consumers not spending and being 70% of GDP market rally cannot be sustained: It has no legs.

eactly...very poor quality GDP numbers..same with corp earnings..gonna be a nasty october when the earnings arent there

marco_m, the earnings weren't there this quarter either. not really. the market is currently factoring in zero risk of failure for the big ones. that's why the financials are on f'ng fire. not because they are the best sector (although in some short-term respects some of them actually may be), but because the market (not retail, the big boys) like to jerk the administration's and ben's chain whenever there is any sign of constraint. the powers that be need the big banks to raise capital on their own. the market will go up until it no longer can, and who knows when that will be. fundamentals? suck, really and truly suck. but this isn't even close to being a market that functions based on fundamentals.

manhattanfox, china could be the downfall of us all. tying your economic well-being to a couple of large emerging economies with these sorts of issues doesn't exactly instill confidence.

aboutready, the frightening statement on Bloomberg mentioned that the socialist party was taken action to ensure that unrest was controlled....

Chairman Mao?

yeah but the cost cutting game bought people some time. if the top line doenst grow and theres no more costs to cut, then stocks will go down. the again theres so much money out there they may just stay afloat for a while..we shall see

marco, i don't think it's sustainable. but i thought the real estate market was in a horrendous bubble in 2004. don't underestimate the GLOBAL need/desire to reflate. i did. but naively i felt this administration might tackle at least some of the issues during this process, which would have precluded the current giddy joy the market is portraying. it's like a naughty frat boy that knows because dad has a building and a professorship named after him knows that he'll never get kicked out. and later he'll not need to perform because dad will do almost anything to make him seem at least presentable. puke away, dear boy. forget a decade or so, someday our wealth will make you PRESIDENT!!

manhattanfox, that is one fuckfest just waiting to happen.

MF, actually it's happening now. for my peace of mind i pretend it's not. overload.

Cost will continue to be cut.

cost = employees = higher unemployment

http://ftalphaville.ft.com/blog/2009/09/18/72761/just-who-is-buying-this-rally/